Answer:
The inventory which results in the highest gross profit for June is $1,870
Explanation:
Given the above information, the inventory method which results in the highest gross profit for June is computed as;
= Number of units purchased - Total cost
June 1 - 183 units = $1,270
June 10 - 244 units = $1,900
June 15 - 244 units = $2,050
June 28 - 183 units = $1,610
= $1,270 + [($1,900 ÷ 244) × ($260 - $183)]
= $1,270 + ($7.79 × $77)
= $1,270 + $599.83
= $1,869.83
= $1,870 (approximated)
